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Briefly
- Treasury Secretary Scott Bessent stated the federal government can not drive banks to purchase Bitcoin, throughout testimony on Capitol Hill.
- He defended the coverage of holding seized Bitcoin, however didn't say whether or not taxpayer cash may ever be used to purchase crypto.
- Bessent later obtained right into a shouting match with Rep. Gregory Meeks (D-NY) over the Trump household’s crypto enterprise.
U.S. Treasury Secretary Scott Bessent entered a convoluted tussle on Capitol Hill Wednesday in regards to the nature of Bitcoin, after fielding a query from a congressman in regards to the token’s potential function in a future monetary disaster.
“Does the Treasury Division… have the authority to bail out Bitcoin?” Rep. Brad Sherman (D-CA) requested Bessent at the moment, throughout a listening to earlier than the Home Monetary Providers Committee.
The Treasury Secretary paused for a second earlier than asking Sherman to elaborate.
“What precisely does ‘bail out Bitcoin’ imply?” Bessent replied.
Whereas many public corporations have invested closely within the cryptocurrency over the past 12 months—and such methods have more and more come below scrutiny amid Bitcoin's latest downturn— the Bitcoin community itself shouldn’t be liable to destabilizing ought to the token’s value slip additional. In its early years, Bitcoin functioned with out a hitch as its worth hovered round just a few cents.
Sherman then pivoted by asking Bessent if he may ever order U.S. banks to purchase Bitcoin.
“I should not have the authority to try this,” Bessent answered.
After a number of extra begins and stops, Sherman ultimately requested if U.S. taxpayer {dollars} would ever be invested in crypto belongings below the Treasury Secretary’s watch.
However Bessent countered with a protection of the U.S. authorities’s present coverage of stockpiling seized Bitcoin. He didn’t give a solution about spending taxpayer cash to purchase further Bitcoin, earlier than Sherman’s time for questions expired.
A couple of minutes later, the Treasury Secretary entered one other crypto-related tussle with a Democratic congressman. Rep. Gregory Meeks (D-NY) pressed Bessent on whether or not he would instruct the Workplace of the Comptroller of the Forex to withhold a financial institution constitution from the Trump household’s crypto firm, World Liberty Monetary, till an investigation is carried out into the agency’s reported partial acquisition by a UAE entity with ties to a profitable and controversial AI chip deal not too long ago brokered by the White Home.
Bessent declined to debate the deal, replying solely that the OCC is unbiased. He then launched into accusations a couple of journey Meeks reportedly took to Venezuela in 2006. Meeks and Bessent shouted at one another for a number of seconds after that, earlier than the argument was ultimately damaged up by committee chair French Hill (R-AR).
“Cease overlaying for the president!” Meeks yelled. “Don’t be a flunky, work for the American individuals!”
